Turtle is the manager of the Home Care Products Division of Care Corporation. As a manager of an investment center, Turtle's performance is measured using the residual income method. For the coming year, Turtle wants to achieve a residual income target of P100,000 using an imputed interest charge of 20%. Other forecasted figures for the coming year are as follows: Working Capital Plant and equipment Costs and expenses P90,000 860,000 1,210,000 How much should revenues be next year to achieve the residual income target? 1,482,000 1,464,000 1,300,000 1,500,000

Turtle is the manager of the Home Care Products Division of Care Corporation. As a manager of an investment center, Turtle's performance is measured using the residual income method. For the coming year, Turtle wants to achieve a residual income target of P100,000 using an imputed interest charge of 20%. Other forecasted figures for the coming year are as follows: Working Capital Plant and equipment Costs and expenses P90,000 860,000 1,210,000 How much should revenues be next year to achieve the residual income target? 1,482,000 1,464,000 1,300,000 1,500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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